Associated Press

WAILEA, Hawaii -- Tom Watson birdied the seventh hole -- worth three skins and $70,000 -- to take the lead Friday in the Wendy's Champions Skins Game.

Watson, the 2003 Champions Tour Player of the Year, blasted out of the bunker on the par-5, 555-yard hole to set up his birdie chance.

Nicklaus had the lead for most of the day after an eagle on the par-5 second gave him two skins and $40,000.

Nicklaus, who turned 64 last week, was second with three skins worth $60,000. Arnold Palmer had two skins and $50,000. Defending champion Lee Trevino was shut out.

The final nine holes of the $600,000 event, worth $390,000, will be played Saturday.

Nicklaus, who finished sixth Sunday in the season-opening MasterCard Championship, had the lead for most of the day after an eagle on the par-5 second gave him two skins and $40,000.

He reached the green with his second shot on the 523-yard hole and sank a 15-foot putt for eagle. The $40,000 moved Nicklaus past Raymond Floyd ($1,630,000) on the Champions Skins career money list with $1,645,000.

Nicklaus earned another $20,000 with his 10-foot birdie on the par-4 fourth.

After the next two holes carried over, Watson sank his go-ahead birdie putt.

At 54, Watson is the youngest of the group and was clearly the longest hitter.

Watson has won 39 times on the PGA TOUR, including eight majors. He won the Senior British Open and the JELD-WEN Tradition last year, two majors on the Champions Tour.

Palmer, playing his 50th professional season, struggled with his drives and tee shots, but was sharp with his putter.

The 74-year-old player snapped a two-year drought without a skin by birdieing the 175-yard third hole. Using a cross-handed putting stance, Palmer softly rolled in a 6-foot birdie putt to win the $20,000 skin.

The gallery roared as the players patted Palmer on the back. His previous skin was the 4th hole in 2001.

"It was fun. I enjoyed it," Palmer said. "We'll see a lot of people putting cross-hand now."

Palmer then sank a 10-foot birdie putt on the 193-yard ninth for another $30,000. He carded four birdies on the front nine.

This is the 16th Skins appearance in 17 years for Palmer, who won the event in 1990, 1992 and 1993. Nicklaus, who won in 1991, is playing for the 14th time.

This year's foursome has combined to win 258 events on the PGA TOUR and Champions Tour, including 39 majors and more than $51 million.

Conditions at the course were windless and warm. The players' shirts were drenched before play began. The 6,835-yard course on Maui island runs along the base of the dormant volcano Haleakala and has 93 bunkers and one lake.

The first six holes were worth $20,000, Nos. 7-12 $30,000, the next five $40,000 and No. 18 $100,000.

Last year, Trevino holed a 10-foot birdie putt on the third extra hole to finish with six skins and $240,000, preventing Hale Irwin from claiming his fourth straight title.

Irwin was second with $200,000, and Nicklaus made $160,000. Palmer was shut out.

Michelle Wie, the 14-year-old sensation from Honolulu, will play Saturday in Nicklaus' group a pro-am at the event.

Friday's play in the Skins Game will be televised Saturday on ABC. The back nine will be televised Sunday.